The Competition Commission (CC) brought its two-year BAA airports market investigation to a close on 19 March 2009 by publishing its final report containing one of the most high-profile decisions in its history. A series of draconian remedies have been imposed on BAA, with most newspaper headlines devoted to the requirement to sell three of its seven UK airports: Gatwick, Stansted and one of either Edinburgh or Glasgow. The report also highlighted concerns about the current regulatory system for airports, as well as aspects of government policy and the planning system.
The enforced sale of three airports will bring an end to BAA’s monopoly ownership of the leading UK airports in London and Scotland, clearing the way for diverse ownership and increased innovation. Christopher Clarke (the chairman of the inquiry) expects the sales to “kickstart a process of competitive rivalry from a standing start where today there is no competition at all”. In the long term, the CC expects that airlines and passengers should benefit from better facilities, more efficient services and lower charges at UK airports, as competition incentivises both BAA and the new owners to respond to their concerns.
